Debunking another myth: “L2's Compete With Each Other” It’s a misleading, or at best, a partially true statement. Most Layer-2 (L2) networks are not locked in zero-sum combat: they are complementary extensions of Ethereum’s scaling architecture rather than adversaries in a winner-takes-all contest. 1. Complementarity, Not Conflict L2's exist to expand Ethereum’s reach, not replace it. Their collective success strengthens Ethereum’s utility as the global settlement and security layer. The network effects and composability of the Ethereum ecosystem heavily favor L1 + dominant rollups, rather than isolated competition among L2's. 2. Diversity of Purpose You can’t box all L2's into the same category. Some operate as infrastructure rollups (e.g., Arbitrum, Optimism), others as middleware frameworks (e.g., Base, zkSync), and still others as application-specific L2's, such as Sony, Robinhood, or other enterprise chains seeking specific use cases. Their differentiation means they coexist more than they collide. 3. Innovation and Consolidation While many L2's will continue to emerge, many will be niche, experimental, or single-purpose, not full-stack rivals. Some might even fail. The real competition will likely occur among a small set of dominant rollups that capture liquidity, developers, and users. Others will specialize, consolidate, or fade away, just as we saw with early Internet infrastructure players. 4. Evolving Relationship With Ethereum The early “L2 revenue boost to L1” thesis has softened as data availability (DA) costs and rollup fee structures evolved. Yet this does not weaken Ethereum’s role; it redefines it. L2's now serve as innovation laboratories, while Ethereum evolves to better support and secure them through protocol upgrades like EIP-4844 (blobs), modular data layers, and shared security frameworks. 5. Cooperation Through Interoperability The next phase of scaling will depend on inter-rollup cooperation, not competition. Initiatives such as the Ethereum Foundation’s interoperability efforts and cross-rollup standards will reinforce a shared ecosystem rather than a fractured battlefield. Summary We’ll likely see hundreds of L2's (already around 100 are up), yes. Most will be niche or transient, not existential rivals. The meaningful competition will be between a few major rollups, while the majority will integrate, specialize, or merge into broader modular frameworks. Rather than L2's “competing to elevate L1,” it’s Ethereum itself evolving to support that diversity through upgrades and shared security. Even in a multi-L2 world, Ethereum’s economic and security moat remains unmatched. Its foundational role is not diluted by scaling; it’s deepened, cementing Ethereum as the indispensable coordination layer for the world’s on-chain economy.